Chino Valley early retirement plan for teachers to be considered for cost savings

By Neil Nisperos Staff Writer

CHINO -- School board members may consider offering teachers early retirement incentives to help offset anticipated budget shortfalls next year, Chino Valley Unified School District officials said.

The district could save money by replacing retiring senior teachers with less experienced, lower-paid teachers.

The school board is expected to vote Jan. 6 on whether to direct Superintendent Wayne Joseph and staff to prepare a recommendation.

The district has about 425 teachers eligible for early retirement. According to a report from Public Agency Retirement Services, the district would need about 84 teachers to take the early retirement to achieve meaningful savings.

If 67 of those 84 vacant positions were filled, the district would save $4.2 million over five years. If none of the positions were filled, the district would save nearly $22 million over five years.

To take early retirement, a teacher must meet state retirement requirements and must have served at least five years in Chino Valley Unified as of June 3, 2010.

Teachers who choose to retire early would receive a retirement package of up to 85 percent of the teacher's final pay to be distributed over five years through a tax-sheltered annuity program.

Given the looming budget crisis, additional retirements from a retirement incentive plan may reduce the need for layoffs in some districts, according to a PARS report. The idea, which is also being considered by Pomona Unified teachers, has gained support from the Chino Valley teachers union.

Justine Cunningham, president of the Associated Chino Teachers union, said retirement incentives are better than a district-proposed wage freeze.

"From the union perspective, I certainly hope they do move forward to at least investigate it," she said, referring to the early retirement plan. "This could certainly be a way for the district to save some money."

Board member Michael Calta said successful implementation of the plan depends on board approval and if enough teachers are willing to sign on.

"I think we need to go forward on it and see how it plays out," he said. 

"The 452 teachers that are eligible for retirement, doesn't mean all of them would jump on it. This depends on their response and the chance to meet with PARS representatives. Each individual has to make their own decision."

Though there are no firm numbers yet, Cunningham said a number of teachers have expressed interest in the program.

"There are quite a few," she said.

neil.nisperos@inlandnewspapers.com

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